Model Legislation for Online Gaming and Sports Betting

iDEA Growth is a trade association that educates and informs on regulated online gaming by addressing key legislative and regulatory issues surrounding online poker, online casino games and online sports betting. As support gains more rapidly in the U.S. for expansion of online interactive entertainment, iDEA is advocating to grow jobs and boost revenue in states where legislation is imminent. iDEA members regularly meet with key legislators, head regulators and members of the executive branch in states to advise on the online gaming industry with practical solutions and a roadmap to a more successful legislative process. To that end, iDEA has developed model legislation, which serves as a guide for state lawmakers legislating online gaming. The model bill is based on key learnings and provides best practices for states, particularly on how to replicate the outcomes and success of New Jersey and Pennsylvania.

A summary of the model legislation is as follows:

Section I defines online gaming as “interactive gaming” and includes all entities, types of accounts and agreements and levels of licensing and permitting.

Section II outlines the licensing process and fees for gaming entities, leaving discretion to the regulatory body for details that will vary per jurisdiction.

Section III addresses the conduct for various gaming operators. There are instructions to balance the need to provide a simple account setup process for customers, with the need to ensure robust “Know Your Customer” protections to successfully track all account funding and gaming transactions to ensure a secure experience.

Section IV addresses authority of the appropriate regulatory body.

Section V covers tax and revenue. We’ve proposed at 10% tax rate based on experiences in other jurisdictions, as this rate allows for greater marketing spend that will lead to more tax revenue for the states.

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